This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Lenders generally want borrowers to agree to invest prudently, yet once a loan is made borrowers may ... (Read 68 times)

waynest

  • Hero Member
  • *****
  • Posts: 553
on: Jun 29, 2018
Lenders generally want borrowers to agree to invest prudently, yet once a loan is made borrowers may use the funds in a highly risky fashion. This leads to the problem of
 
  A) deposit insurance. B) investor selection. C) critical mass. D) moral hazard.

Question 2

In the late 1970s, savings and loans institutions were in financial trouble because they
 
  A) had to pay low interest rates to attract depositors, but were earning low interest rates from past investments.
  B) had to pay low interest rates to attract depositors, but were earning high interest rates from past investments.
  C) had to pay high interest rates to attract depositors, but were earning high interest rates from past investments.
  D) had to pay high interest rates to attract depositors, but were earning low interest rates from past investments.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

raenoj

  • Sr. Member
  • ****
  • Posts: 340
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

D


waynest

  • Member
  • Posts: 553
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

jordangronback

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con
Glowing Base Of Tree Made By Arranging Leaves Glowing Base Of Tree Made By Arranging Leaves
Food: Made Over Made Better Food: Made Over Made Better
Quality of U.S. and Japanese-made Automobiles Quality of U.S. and Japanese-made Automobiles
Use a graphical method to find the length of the loan to the nearest year Use a graphical method to find the length of the loan to the nearest year
Nader makes semi-annual payments of $3000 to pay off his loan. Because of unemployment, he ... Nader makes semi-annual payments of $3000 to pay off his loan. Because of unemployment, he ...
Video: Appendicitis Animation

For a complete list of videos, visit our video library